We have all witnessed the ludicrous and economically illiterate protesters that are demanding a $15 per hour minimum wage. These protesters have actually succeeded in having their demands met by some liberal-dominated cities like Seattle and Los Angeles.
Making matters worse, the California legislature is actually considering mandating the $15 minimum wage statewide, which will only drive another nail into the coffin of the once-Golden State’s murdered economy, chasing away the few remaining small business owners left with any sense.
But before those protesters and low-skilled workers start celebrating their good fortune and victory too jubilantly, they should realize that as their wages are increased, so too will the prices of the things they buy increase as well.
That little tidbit of basic economics knowledge was recently shared by the CEO of Sonic restaurants during a recent company conference call, according to WPTV.
— JobCircle.com (@JobCircle) March 31, 2016
Clifford Hudson said that if the minimum wage for entry-level unskilled workers is raised, most of the restaurants in his corporation will be forced to increase the price of menu items simply to stay in business.
Though there are also fears that an increased minimum wage could lead to lost jobs, Hudson doesn’t believe that any of his restaurants will be forced to let any employees go. Left unsaid is the fact that jobs will be “lost” by having never been created in the first place, with restaurants foregoing hiring new employees at a rate higher than they are worth.
Hudson’s warning of rising prices in response to an increased minimum wage is not confined to the restaurant industry either, as prices across virtually all industries will rise in relation to the minimum wage, leaving minimum wage workers right where they started with no further purchasing power than they had before.
It would be nice if some of those demanding a virtual doubling of the minimum wage would take the time to study the basic fundamentals of economics, but alas, many of them are too far gone or simply don’t care, as they have been assured by politicians like Bernie Sanders, Hillary Clinton and President Obama that all of their needs will be met by their oh-so-benevolent government.
Please share this on Facebook and Twitter, especially if you have economically illiterate friends that think raising the minimum wage will help anybody but the tax collectors in the slightest.